i don't think market confidence comes back until there's perp walks. look at mf global, nothing corzine should be in jail or at least under indictment. thank you for watching tonight. great to be with you. we look forward to seeing you tomorrow. ♪ lou: good evening, everybody. republicans unsuccessfully pleading with congressman todd to drop out of the senate race in missouri for the good of the party. his insensitive and inappropriate comments on rape and abortion have party leaders concerned negative backlash could hit candidates up to the romney-ryan presidential ticket. also tonight, two unwelcomed guests on schedule to collide with the appearance of the republican national convention in tampa, florida. one of them much more partisan than the other. also, reports of fighting

between the obama campaign team and the white house. new york times best selling author, the amateur, joins us, and president obama today bragging about all his administration has done for education, but the numbers tell a different story, and we'll examine them in "chalk talk." toddacheen apologizing for his ill-informed comments on rape and abortion, but also remaining tonight, defiant. the missouri republican telling mike huckabee while he's sorry for the comments, he won't walk away. >> we're going to continue with this race for the u.s. senate. we gave it a lot of thought, and the first thing we felt we have to do is we have offended people, and we tried to respond to that and let people know we didn't mean anybody or take in any way rape, anything less than

very, very seriously. lou: mitch mcconnell untouched by the apology, blueprint in the assessment of the situation saying, quote, "congressman akin made an error in the time of candidacy carries great consequence for the country. sorry is not sufficient. it is time for the congressman to step aside." the national republican chairman called it a moment of stupidity saying he needs to get on thinking about withdrawing from the race. governor romney and congressman ryan urging akin to listen to the leaders. then there's the money. head of the national republican senatorial committee warning akin they will no longer fund the race if he says in because his candidacy jeopardizes other republicans. crossroads gps founder turning a back as well telling fox news his super pack's money will be

better spent elsewhere. >> crossroads will not spend money in the race. no way to recover in my opinion, so our group decided if he remains the nominee, no reason to throw good money after bad by trying to win this seat. lou: former missouri senators, john ashcroft and others confirming to fox news they turned down the offer to replace akin as the republican candidate from missouri. we'll be joined by former presidential advisers here in just moments, but first, we want to turn to fox news capitol hill senior producer who has the latest on congressman akin and that missouri senate race. chad, what are you hearing at this hour? >> well, absolutely nothing. 62 minutes ago. that was the deadline, close of business in missouri for todd akin to drop off the ballot, do that, and switch out the ballots with another potential candidate that would be prepared by the

central committee the of the republican party in committee. that did not happen. there's an option still for todd akin to drop out between now and september 25th. the law says in missouri that they would charge the akin campaign to do that, and, again, the central committee would be up for fielding a candidate ere, but, you know, there's a tradition in washington of wise men going to political figures in trouble. we remember during watergate in 1974, people from capitol hill went to president nixon, not that level, but akin is not listening. lou: not listening, obviously, made his decision, and there's no indication there on capitol hill or from the republican national committee as to what they will do. which amongst a number of candidates, certainly, the two challengers to akin, they might prefer to have a write-in candidate, for example? >> that's always a possibility. it's a very hard lift. we did see a precedent for this in the last election cycle.

the republican senator from alaska lost to tea party favorite joe miller in alaska. she, then, ran as a write-in candidate in alaska. -extraordinary. she beat miller and the democrat in the general election and back in the united states senate. we have not seen that scenario happen here in missouri, but it's always a possibility, especially when the stakes are this high, lou. lou: pointing out that she did that by starting that write-in campaign in september so there is plenty -- considerable time for the republican party to make the necessary choices and set about business of selecting a candidate if that's, indeed, what they choose to do. chad, great to have you with us. >> thank you. lou: following the story throughout the day. meanwhile, attack mode on the campaign trail. president obama kicked off a two day trip through swing states ohio and nevada. they are highlighting the differences between the two campaigns on the issue of education.

governor romney focusing on expanding his fundraising lead leaving running mate, congressman paul ryan, to hilt the obama administration for failing the small business community. fox news, chief white house correspondent, ed henry, with our report. >> president obama today opened the second front in his battle to define republican mitt romney's running mate as a radical starting with medicare and now education as the president uses ryan's budget to reunite passion among college students. >> cuts financial aid for 10 million students a year. keep in mind, they are not making the cuts to create jobs. they are not proposing these cuts to pay down the deficit. governor romney's proposing these cuts to pay for a new $5 trillion tax cut. >> in the battleground of pennsylvania, ryan fired back. >> you're going to hear a lot of distortions. >> the romney campaign says the president is extrapolating cuts to meet the cuts, not details in

the budget. ryan's pitch to young voters shows how the government needs to stop drowning future generations in debt. >> stop spending, get the deficit and debt under control to have good jobs today and our kids to have a bright future. >> volleys came 24 hours after the president chastised the republican ticket for a welfare ad that got three pinocchios. >> you can't make things open. >> trying to turn the words around. >> either mitt romney, through his own words and own signature, was misrepresenting his position at bane to fcc which is a felon. >> nobody accused him of being a felon. >> the response of a student of how he would make college more affordable. >> i can tell you to shop around.

♪ >> the president made a quick stop at ohio state to fire up students. and then addressed 3300 people here at capital university, smaller than the student crowds he got four years ago, and he addressed questions about enthusiasm head on. >> they are counting on young people sitting this one out saying, you know what? well, obama's, you know, he's grayer now, he's not as new and fresh as he was in 2008 so young people, young people are not going to turn out the same way. i'm counting on something different. i'm counting on you. [cheers and applause] >> now it's on the to nevada for the president. tomorrow night, in new york city for something call the obama classic with basketball stars like michael jordan and carmelo anthony, the president combining two passions, basketball and fundraising. lou? lou: a lot of big money represented there. he ought to have fun in both respects. ed, thank you so much.

>> absolutely. lou: ed henry, chief white house correspondent. joining us now, fox news political analyst, doug shone, former democratic pollster fox news contributor. good to have you with us. >> good evening. lou: starting with you, doug, akin, obviously, he's still in the race, the republican party is telling him to go to hell. #wr do they go from here? >> well, they have to do everything they can to get him out by the final deadline i understand to be september 25th. bottom line, lou, if he doesn't go, they could lose missouri in the presidential, senate, and ultimately, the whole election. lou: the democratic party spent more money on akin as the challenger to their candidate, senator mccaskill, and this morning, actually, akin has a lead over senator mccaskill. >> yeah, it's not going to last. you know, missouri's a tough state, but the damage being

done, and let me tell you something, damage done in the election for -- with the biggest groups of republicans having problems with, women, young people, is just incredible. this guy -- lou: wait a minute, wait a minute. are you telling me that the american people are so stupid they can't differentiate the identification of a republican congressman in missouri seeking the senate and -- >> no -- lou: and the ticket running for -- >> it puts the issue on the table and puts it more in focus. that the point. the other thing is the problem is for the brand, the republican brand, this idea they keep getting people out from under rocks is unbelievable. lou: where did they find this fellow and how much of a problem he's creating for a brand if you all would listen with the audience to our vice president. >> over the objections they sound like squealing pigs. over the objections of romney and all of his allies ring we passed some of the toughest wall

street regulations in history. turning wall street back into the allocator of capital it's always been and no longer a casino, and they want to repeal it. lou: "squealing pigs"? he's only been back on the campaign trail a matter of hours. >> he's unchained today. lou: unchained, love it. look, i'm not going to -- >> i guess i'd say this. speaking as an analyst, the vice president has managed to make a series of gaffes that are really unprecedented, but they have not gone as far as, unfortunately, conman akin has gone. i think ultimately pat's right. congressman akin is beyond the pail that it plays against the narrative of republicans. biden just looks, i think, like an increasingly irrelevant figure. lou: irrelevant? this is the man one heart beat

from the presidency. >> i understand that. >> how about eratic? lou: deferring to the descriptions, i want to understand what's going on? romney now has a 2-point poll. akin, you want to dismiss it, but has a lead over mccaskill. >> one point lead. he was ahead -- that seat was gone from mccase mccaskill. member, the democrats spent real money. lou: what in the world is going on with an incumbent president who's being just amazingly outraised by his challenger. i can't think of the last time an incumbent president -- >> here's the thing. there is huge, huge anger among contributors, wall street people, joe, biden was talking about, against obama. the hidden message of the election is by october, lou, you'll see obama out spent 4-to-1 with the super packs in

the party and individual campaign. lou: can he win? >> yes, he can win. look, he has something better than money. he has the oval office. he can call, as he did the other day, a press conference, get prime time everywhere, be able to be heard. it's not all about money in this. he does have a problem is enthusiasm of the base. >> that's right. it's not all about money, but, pat -- >> it's a lot about money. >> exactly. if you say to the wall street guys it's not about money, they give more because they want obama out. lou: appreciate it. thank you. president obama, lowering the bar on education? test scores continue to decline, and president obama says something like he's walking the walk we'll have his latest test score and break it down in tonight's chalk talk. dependency nation, americans more dependent than ever on their government.

how can this country return to prosperity? best selling author george gilder here to talk about the book "wealth and poverty."

lou: america becoming dependent sigh nation. can we find our way back to prosperity? talking with the author of "wealth and poverty," and george

guilder joins us in a moment, but first, wall street, and take care of business as it were. stocks ending lower, some booking profits on the rally, and dow jones industrials down not quite 70. s&p down about 5, and nasdaq didn't make it to 10 points. overseas, european stocks higher on rumors that central bank buys spanish and italian bonds to cut borrowing costs, and eurozone finance ministers meeting tomorrow in athens. yes, greece still exists. here at home, atlanta federal reserve bank president remains uncertain about whether additional stimulus is needed. next fed meeting is in mid-september. minutes from the last meeting released tomorrow. facebook dropping 4% today, just over 19 bucks a share after peter, one of the company's earliest up vesters sold off the bulk of facebook holdings. interstate commerce grounded along the mississippi river with

hundreds of boats and barges awaiting passage along an 11 mile stretch of the river closed because of low water levels, worst drought in a century leaving it at the lowest point since 1988. it's unclear when the river reopens. the coast guard is trying to clear the channel. next guest influenced the economic policies of president reagan, and more recently, congressman paul ryan through his best selling book, and here it is, "wealth and poverty," and joining us is legendary, i'll say economist, social critic, and thinker, my, lord, co-founder of the discovery institute, george gilder who wrote an technology and economics. great to have you here. >> delighted to be here. the new launch of supply side economics. lou: this is astonishing. this book, by the way, and if

we've got that up, i know we've got it over here in graphic, but i have a quick secret about the book. this book is, i think, along with, you know, the books of milton friedman, i believe, the most important books written on american capitalism, certainly in the last 50 years and 60 years, and i just think it's terrific that you've brought the book back to reintroduce to folks, and congressman ryan studied at your knee metaphorically through the book. >> well, it's exciting to have romney embrace ryan. i think this really represents a turning point for american policy and a recognition that we can't depend on spurring demand to construct growth. growth is the product of entrepreneurial creativity, and

any policies that don't foster entrepreneurial creativity destroy demand. lou: people surprised to hear you talking like this because there's this idea this is a world of scarce resources, they are all finite, everything about us is predictive and should be predictable. there are those, as you know, by the legions, and people believe that the leader of that legion is a guy by the name of president obama -- >> and john holdron. the original zero sum game, scarce resources, father and fad mother -- famine sweeping the world by 2000. lou: what i call "thumb suckers," and i won't mention names, well, friedman at the "new york times" because everything is compartmentalized in his mind so we shrivel up and prepare ourselves for the disappointments of the future

rather than embrace it and assure this country and generations of americans our destiny and potential. >> yeah. well, it's really amazing how government props up the past in the name of progress, and that's what friedman wants. he wants the land of windmills and solar cells, and occupying huge amounts of land and delivering no significant energy or benefit to the environment. that is the key theme of thomas friedman's current posture, and it's really ridiculous, but captivated the obama administration with this test of green goo, and so it's -- it really is corrupting american -- enterprise. >> your book, your thoughts,

your perspectives in the book, and your philosophy is so compelling because you don't defend capitalism. you don't defend free enterprise. you advocate it. you embrace it. you create great enthusiasm about the ideas that have made this country so wealthy, and people forget. created so much wealth for the entire world. >> that is right. lou: the book, how important is it, do you believe, that everybody read this book? >> well, i think there's a whole new generation out there who really don't grasp the essential principles of supply side economics that galvanized all the wealth that they currently enjoy. it really all began with that turning point when ronald reagan assumed off as following the carter administration and launched 20-30 years, really, of expanding growth.

now we're all encrusted with regulations and litigations and even trying to suppress co2. we're in -- we're the life force and it's crucial that we open the horizons of the economy. you don't do that by putting a cap on the economy by taxing the rich. the rich are businesses that have succeeded. lou: george gilder author of the book, opening horizons of your mind, i guarantee you, make sure you buy the book. embrace who we are and capitalism for all it's worth. stay with us. we're coming roight -- righ all energy development comes with some risk, but proven technologies allow natural gas producers to supply affordable, cleaner energy, while protecting our environment. across america, these technologies protect air - by monitoring air quality and reducing emissions...

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>> and once you know that we have not just talk the talk and we have walked the walk. lou: that is the president bragging about his administration's efforts to improve education. you have to love the lofty language, talking to all of those educated folks. this demonstration also loves waivers. waivers for welfare work requirements and obamacare. often overlooked are his labors to the biggest bipartisan education legislation in more than a half-century. no child left behind. no child left behind. how many waivers? >> 33 states and washington dc. granted exemptions from the law,

specifically, requirements that all students be proficient in reading and mathematics by the year 2014. thirty-three states and washington dc can't even get close. nearly half of all schools, 48% of them, 48% of those schools missed their targets under and sealed the over the past school year. president obama loves to spend taxpayer money. the federal education spending has already quadrupled over last half century. in the 1960s, in the 1960s, the government was spending about $2800 per student. $2800 per student. now, the government is spending more than $10,000 on students.

$10,000 in 2012 american students rank 14. fourteen been reading proficiency. fourteenth in reading proficiency. we are 25th and mathematics. when that test was first administered in 2000 from the united states ranked 15th in reading. we have a crew improved immeasurably. and 19th and math. so we have gone backwards in

mathematics, and we have managed to improve by one slot in reading proficiency. by the way, we spend more money per student than any developed nation except for luxembourg. and it is really taxpayer money and property taxes that is funding our public schools. not the federal government. that is kind of interesting because all you hear from, it seems, is the president, the department of education, and the left loves to demonize 1% of the society, we never quite figure out who they are, but our public schools are seeing just 10% of their money from the federal government. the feds, we will call them. that compares to 46% and 44% from the state and 44% local.

local money comes from property taxes. so who do you think should have the biggest say in public education in this country? shouldn't be president obama? should be the department of education and the federal government? shouldn't be the teachers union? maybe, perhaps, the tens of millions of taxpayers in this country to pay 90% of the bill for school. i would just offer this thought both candidates governor romney, president obama, when it comes to education, would you please do all of us a favor. began to think local. republicans on their way to tampa, florida, less than a week before their convention.

but one big blowhard might mess up the show. we will tell you about the threat of an unwelcome guest. and big labor finding a way to tag their membership rolls? what was behind big labor support of obamacare to hiding a secret agenda. it is not a secret anymore. president obama campaigning into swing states today. >> governor romney didn't say anything about grants and loan programs and critical things for college students, work study programs, rising college tuition, community colleges,. >> claims are mounting. >> claims are mounting. i sit down with ed klein the capital one cash rewards card gives you a 50% annual bonus. and everyone, but her... likes 50% more cash. but, i have an idea. do you want a princess dress? yes how about some cupcakes? yes lollipop? yes! do you want an etch a sketch? yes!

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lou: just how lucrative can government services be? according to the author of the new book, nearly half a million

federal workers earned over $100,000 in compensation each year. thanks in part to public sector union membership. that is one in five federal workers. more than 20 million health care workers in this country could become unionized due to the president's health care law. the author detailing your proposals in the 27 state governments to treat government health care workers under obamacare and then unionize them and unions stand to earn a billion dollars in dues. quite a plan. we will be talking with author mallory factor when he joins us here tomorrow. new reports of conflict within the obama campaign team. suggesting the president's reelection efforts seem more

motivated by the themes of hope and change. joining us now is author of ed klein, author of the book "the amateur." good to have you with us, ed. this has to be because all the huge canvas and analyze -- this is breathtaking. this president and vice president, this is starting to look like a movie script for crying out loud. >> there is so much dysfunction in this campaign. i was thinking what some people in the campaign before i came on your show tonight, there is a big debate going on inside the obama campaign. nobody knows this about you and me now and your audience. over the question of how they should treat the 40 million evangelicals in this country,

but are reluctant to vote for mitt romney because the obama campaign is starting what they call an educational schedule in the evangelical community about what mormonism is in order to suppress that evangelical vote. lou: when you talk about an educational program, are you talking about a tutorial for evangelicals or are you talking about commercial time on television? >> i am talking about the super pacs doing segments on television about mormonism, which will turn off the evangelicals, because they see the mormons to begin with as a cult.

by sitting on the fact that here we have a mormon candidate and his vice president happens to be a roman catholic, paul ryan, there is a bitter battle in the evangelical community between the democrats, who are trying to keep these people home so they will not vote for mitt romney, and the republicans who are trying to convince evangelical pastors that a non-vote isn't especially essentially a vote for obama. [talking over each other] lou: it's meant to be extraordinary. that would be the last, i would think, the less gas from the obama campaign where they could do that. >> there is a debate about that question, whether if they do it, won't there be a terrible backlash about you can do this about religion, it is really

dirty, it is underhanded,. it is bigotry. they are seriously considering doing this. lou: amongst the thing that we are considering on the part of the president, now there is this great dissension, apparently, according to the latest writing by glenn thrush in obama's last stand, talking about what seems to be unsustainable campaign efforts, so long as stephanie cutter and david axelrod are not at one another's throats. >> this stephanie cutter is the same person who referred, as we recall, to mitt romney is a felon. this is a woman along with debbie wasserman schultz, doesn't seem to be able to modulate what she said on

television. according to this new e-book. i think there is a lot of tremendous backbiting inside the campaign, which is very indicative of how they feel about the way things are going. lou: to this point, it appears that the romney campaign, at least, remains buttoned up. we are not hearing the same sort of noises, emanating, if you will. lou: ed klein, the book is "the amateur." a bestseller for 13 weeks. up next, american taxpayers finally seeing a return on half billion dollar investment and slender. you will be very excited. job creation, not part of the payoff, as you might have suspected. tropical storm isaac on course for a very interesting piece of geography. we will have that for you here

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lou: the defense department today confirming two servicemen were wounded when a rocket damaged army general martin dempsey is c-17 aircraft in afghanistan. military officials say the chairman was not in danger. they also say he was not the target. a spokesman for nato's security assistance force, called it a lucky shot. he left the base per rack using another aircraft. there were no lucky shots on that aircraft, fortunately. a number of storms in the caribbean, one of them bearing down on tampa, florida, the site of the republican national convention. another unlikely and perhaps unwelcome visitor.

expected to gain strength and move towards florida. hurricane isaac could become a hurricane by thursday, reach landfall by sunday. and open to the question of what happens in tampa, florida. a spokesman says officials have our event coordinating with the secret service and oversee security for the event. this may kill in comparison, of course, to the political storm. vice president biden visiting the sunshine state, at precisely the same time next week. by the way, a matter of historical know, bob dole, former republican senator, tempting the same stunned when he was running for president in 1996. president clinton in chicago for the dnc convention. there, of course, just to say hello and we know how that worked out. the obama administration's failed 535 million-dollar bet on solyndra may be seen a somewhat

interesting situation. 1400 glass tubes are part of an art project entitled natural discourse. the gardens website describes it as worth half a billion dollars, or at least a percentage thereof. at least it is worth something. up next, looking for a backup plan for todd akin. what is this sacrificing one senate seat better for the party? the a-team with a number of views. lis wiehl, santita jackson, and john fund. john fund. that is going to change quickly. you see us, at the start of the day.

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lou: joining us now is the "a-team." lis wiehl, whose brand-new radio show, legal lis wiehl, premieres on all fox news affiliates at 8:00 a.m. affiliates, stand by. also, good luck with the show. herewith a new book, who is counting, john fund. and santita jackson. good to have you with us. let's turn first to ed klein's comment about an education program, some of his sources that the obama administration might bring out mormonism in october. >> let me just talk about this offset coming on here.

it is wrong to bring this in and make it an issue. it is just completely wrong, morally, ethically, not legally, of course, but everything else. >> you mean like hank hank williams junior? >> there you go. >> obviously, hank williams is wrong. but he doesn't have a super pac behind him with millions of dollars. and if this is true, it is very disappointing because these super pacs party accused him of causing the cancer death of one person. who knows what his parties or to say. it is deplorable which the race that two weeks ago we thought would be great for the country, gee, that didn't last long, did it? >> did you really think it was going to happen?

>> i thought there would be for a brief and shining moment. >> i didn't think so. but it is very disappointing. because we need to talk about jobs. that is the number one issue. people do want to be employed. we are not talking about that. we cannot descend into a discussion about mormonism. that is a horrible way to go. >> i think the senate is about as far as we need to descend. lou: exactly. the idea that right now these candidates have the ability, and i think about this often. had governor romney not chosen paul ryan, i don't know when we would have gotten around to the budget. i am serious as i can be. he has had the ability to inspire, at least, serious discussion. >> we are talking about medicare now. because people are scared of what medicare will do and about their futures.

and jobs and entitlements with medicare. i think it is great that we are least having that discussion now. to bring it down to the government, talking about mormonism and religion -- it is wrong in the wrong place. lou: let's talk about jobs. because this president, like i said, he is going to reduce unemployment. he is going to reduce the deficit. he hasn't even approached even at the margin, progress on any level that is most important. >> we have been here many times before. this is a generational problem. if we could just admit the problem that we are in, then we will come up with real solutions. this is not something that we will be resulting in four years. and i'm not trying to give him responsibility. lou: [talking over each other] what happened here? you took 3.5 years and just threw it away.

[laughter] >> i didn't think it was thrown away. he did stop the 750,000 jobs a month that were being hammered. but now where do we go from here? for years we have been talking about the dangers in the united states of america being outsourced. i want to have that discussion in this campaign. you know what? we can start that. >> what she mentions is going to become the new normal. which is stagnation. we are producing 150,000 new jobs a month. that is not even enough to make up for the increase in the labor force. stagnation is what we had in the 1970s. it is what europe has had for years. structural employment. over half of the employees have been unemployed for years. they lose their skills and they can't get jobs again. >> they don't look for jobs. >> the last thin we should do as americans and say that this is something that is going to be generational. ronald reagan turned around in 1980 and we can do it again. >> i want to point out to everybody, george was the author

of this book, published in 1981. it was the guidebook to economics and the reagan administration. it is the guidebook to free enterprise and capitalism, by the way, i think with some great justification, he took ownership not only of the reagan years, but also the clinton years. between the two men, those two presidents presided over the creation of 40 million jobs. this book is helpful in reigniting the spirit of recapturing the kind of confidence in the entrepreneurial essence -- the absolutely embracement of capitalism increasing prosperity for everyone. there is a fellow that i know pretty well who was so far throughout the 80s, by the name of jesse jackson. >> thank you very much, john fund, lis wiehl, santita

jackson. up next, one of our viewers put a number on how far backward the administration has taken the discussion. we will go to the inbox when we come back energy is being produced to power our lives. while energy development comes with some risk, north america's natural gas producers are committed to safely and responsibly providing generations of cleaner-burning energy for our country, drilling thousands of feet below fresh water sources within self-contained well systems. and, using state-of-the-art monitoring technologies, rigorous practices help ensure our operations are safe and clean for our communities and the environment. we're america's natural gas.